A bold Bill with blurred lines

By Deepika M G

The Government of Karnataka has taken a significant step with the release of the draft Domestic Workers (Social Security and Welfare) Bill on October 15 for public consultation. This is the state’s second major labour reform effort in recent months, following the Karnataka Platform-Based Gig Workers (Social Security and Welfare) Act introduced in August. Together, the two measures position Karnataka as a pioneer in institutionalising social security for the unorganised and contingent workforce.

These reforms operationalise the Code on Social Security, one of four comprehensive labour codes introduced by the Union government (2019–2020) to formalise the informal sector. As labour falls under the Concurrent List, states must align their frameworks with the central codes. Delays in doing so prompted the Supreme Court to direct states to expedite implementation. Karnataka’s recent actions are therefore timely, though not without implementation and structural challenges.

The draft bill mandates written contracts between domestic workers and employers and payment of minimum wages before engagement. It defines ‘domestic worker’ as anyone employed to do domestic work—directly, indirectly or through a contract or digital platform—whether part-time, full-time or as a replacement worker, for one or more employers on the premises or otherwise. The definition includes casual, temporary, piecemeal, gig and migrant workers. An “employer” is any person engaging such workers, either directly or via agencies or platforms. Recruitment agencies outside the state and workers employed by Resident Welfare Associations (RWAs)—including housekeeping staff, security guards, and gardeners—are also covered.

The bill caps working hours at 48 hours per week, provides for leave, maternity benefits and protection against forced labour, and mandates registration of workers within one month of employment. Non-compliance attracts fines and imprisonment. Implementation will be overseen by inspectors and a new Karnataka State Domestic Workers Social Security and Welfare Board, which will administer funds and design welfare schemes. Financing sources include registration fees, fines, government grants and a welfare cess of up to 5% on employers and agencies. District-level grievance redress committees are also proposed.

The insistence on written contracts is crucial, as domestic workers have long lacked formal agreements, making minimum wage enforcement nearly impossible. The bill seeks to universalise social security across the unorganised sector, irrespective of employment type.

The earlier Karnataka Platform-Based Gig Workers (Social Security and Welfare) Act, 2025, institutionalised social security for gig workers, enabling the implementation of the Social Security Code, 2020.

Both reforms mark progressive steps towards formalising India’s vast informal workforce. They introduce a shared responsibility model: employers are expected to provide basic employment benefits such as minimum wages, maternity leave and paid holidays, while the State supports social security schemes—including insurance and old-age benefits—through a cess-based mechanism.

However, the definition and classification of workers under the Domestic Workers Bill raise concerns. By grouping all informal workers under a single framework, the bill risks overlooking sector-specific realities. Many domestic workers, particularly women, work for multiple employers, raising questions about registration and the application of minimum wage rules. With widely varying working hours, it is essential to specify hourly rates and overtime provisions.

Another concern is the overlap between domestic, gig and contract workers. Those hired through digital platforms are effectively employees of those platforms, not households, and may require distinct regulation. Likewise, workers employed through RWAs or contractors should be addressed separately under the Contract Labour Act.

Similarly, under the Platform-Based Gig Workers Act 2025, gig workers have been grouped under the unorganised category despite working for large aggregators. They may be better classified as dependent contractors, as recognised in some Western economies.

Finally, while the bill’s intent is commendable, the state must guard against job losses if higher wages or stricter regulations make domestic help unaffordable. This could encourage automation through machines such as dishwashers and robotic cleaners. Therefore, parallel efforts in skill development and job creation are essential. Yet another short-term effect, if the bill gets passed, could be the effect on spiralling inflation with the rise in wages in the labour market and its effect on the rest of the sectors and the economy. 

(The author is a professor in the Department of Economics at Alliance University, Bengaluru)

Disclaimer: The views expressed above are the author's own. They do not necessarily reflect the views of DH.